More Bingo Halls Shut Down As UK Parliament Continues 22% Bingo Tax

July 15th, 2009

Bingo Tax Rise

After the UK Parliament voted in favor of the controversial 22% bingo tax regime, some more UK bingo halls have announced closures as a result of an inability to keep up with mounting debts and decreasing profitability.

The latest to announce closures is the Vote group. Vote has decided to cease operations in seven more of its bingo halls, resulting in more job losses. The Gala group has also announced that it will close down its bingo operations in Birmingham, Hull, Glasgow and Leven (Fife and Pitsea). Some reports suggest that the Aldridge operation on Gala too could go down; this alone could translate to 300 jobs. Riva Bingo has decided to close down its bingo clubs in Aberdeen and Bristol. All these bingo halls had been debating over a closure issue but the results of last week’s parliamentary debate, which saw the amendment to the bingo tax defeated by an overwhelming 283-83 margin, more or less sealed their fate.

The bingo industry in the UK has been under tremendous pressure for quite some time now. Over the last couple of years, the industry has had to battle unfavorable legislative amendments (which put a cap on the number of high revenue slot machines which can be housed per hall) and the smoking ban which saw a substantial dwindling in footfalls. The people’s attitude to the game too has undergone a sea change – bingo is seen as acceptable pastime for youngsters too. Often described as one of the softest gambling options available in the UK, the advent of online bingo gaming too has delivered a severe blow to their land based counterparts. And now, the hike in bingo taxes in a recessionary economy seems to be the last straw for many bingo halls. More than 46 bingo halls have closed down in the last couple of years-many of them being converted to cinemas or entertainment centers. Of the 46, a huge majority has come in the last 6 months. More closures are expected in the next year.

Even though parts of the UK have reported some economic recovery, bingo seems far from any kind of economic about-turn. Bingo also continues to be the gaming sector which is taxed at the maximum rate, even though other forms of gaming like casino and sportsbetting are taxed at only 15%. With very low operating margins and diminishing membership, many more bingo halls could be on the way down in the next few months if the current scenario continues.

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More Bingo Halls Shut Down As UK Parliament Continues 22% Bingo Tax

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